Wednesday, August 30, 2006

Tar sands royalities.

1% of Gross
25% of net

This from CAPP

Oil sands royalties are 1% of gross revenue until the plant is paid off. After that it's 25% (not 1%) of net revenue until the end of time. If you refer to the following brochure and others listed on the CAPP website under publications, you may be able to find more information. Another recommended resource for information pertaining to royalties is the Alberta Department of Energy.

I hope this helps you out with some of your questions.

This from Alberta Connects; Energy.
Yes Mr. Clark the figures representing 1% of Gross and 25% of net can very well be the same number.

Consider the 1% is taken after all expences for the plant building are deducted.
where as the 25% is taken on the net a after all expences for operation are deducted and could very well return the same royality.

I still have trouble seeing the risk that the conservative buddies are taking.
John Clark
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